Revolut Clashes with Early Investors over Blocked Share Sale

Revolut’s dispute with a crowdfunding platform concerning
the sale of its shares escalated into a potential legal battle. The fintech giant reportedly
blocked a discounted secondary share sale involving early investors.

Republic is now threatening legal action, accusing Revolut of restricting their liquidity options, City.AM
reported. The dispute is due to a proposed sale of 10,047
Revolut shares by Jamba Europe, an entity owned by HOF Capital, through the
Republic platform.

The Cause of the Conflict

Jamba agreed to purchase these shares from
over 200 investors for around £4.5 million. However, Revolut reportedly intervened,
changing its articles of association to restrict such sales, according to a
letter from Republic.

The crowdfunding platform has sought legal advice and is
awaiting a response from Revolut. Investors on Republic’s platform have voiced
concerns that Jamba’s offer undervalues their shares. The proposed price of £447.69 per share represents a
32% discount compared to an August share sale facilitated by Morgan Stanley,
which valued the shares at $865.42 each.

Jamba’s offer was reportedly below the bids made by other
investors, some of whom were willing to pay up to £549.93 per share. Republic defended the discounted pricing, claiming it
was the best deal they could secure after multiple failed attempts to arrange
sales due to Revolut’s resistance.

The Long-Standing Tension

This clash is the latest in a series of disputes
between Revolut and early backers seeking to cash out their holdings. Since its
2017 crowdfunding campaign, where Revolut raised £3.8 million from investors on
the Republic platform (then called Seedrs), the fintech has been reluctant to
approve secondary sales.

Republic argued that the sale was compliant with
Revolut’s rules since Jamba had participated in the 2017 fundraise and held
shares through the platform.

However, the handling of Jamba’s offer attracted
criticism from the Republic’s users and scrutiny from the UK’s Financial Conduct
Authority. The platform reportedly canceled the sale in October after
the FCA demanded specific regulatory approval.

Expect ongoing updates as this story evolves.

Revolut’s dispute with a crowdfunding platform concerning
the sale of its shares escalated into a potential legal battle. The fintech giant reportedly
blocked a discounted secondary share sale involving early investors.

Republic is now threatening legal action, accusing Revolut of restricting their liquidity options, City.AM
reported. The dispute is due to a proposed sale of 10,047
Revolut shares by Jamba Europe, an entity owned by HOF Capital, through the
Republic platform.

The Cause of the Conflict

Jamba agreed to purchase these shares from
over 200 investors for around £4.5 million. However, Revolut reportedly intervened,
changing its articles of association to restrict such sales, according to a
letter from Republic.

The crowdfunding platform has sought legal advice and is
awaiting a response from Revolut. Investors on Republic’s platform have voiced
concerns that Jamba’s offer undervalues their shares. The proposed price of £447.69 per share represents a
32% discount compared to an August share sale facilitated by Morgan Stanley,
which valued the shares at $865.42 each.

Jamba’s offer was reportedly below the bids made by other
investors, some of whom were willing to pay up to £549.93 per share. Republic defended the discounted pricing, claiming it
was the best deal they could secure after multiple failed attempts to arrange
sales due to Revolut’s resistance.

The Long-Standing Tension

This clash is the latest in a series of disputes
between Revolut and early backers seeking to cash out their holdings. Since its
2017 crowdfunding campaign, where Revolut raised £3.8 million from investors on
the Republic platform (then called Seedrs), the fintech has been reluctant to
approve secondary sales.

Republic argued that the sale was compliant with
Revolut’s rules since Jamba had participated in the 2017 fundraise and held
shares through the platform.

However, the handling of Jamba’s offer attracted
criticism from the Republic’s users and scrutiny from the UK’s Financial Conduct
Authority. The platform reportedly canceled the sale in October after
the FCA demanded specific regulatory approval.

Expect ongoing updates as this story evolves.

This post is originally published on FINANCEMAGNATES.

  • Related Posts

    CySEC Flags Multiple Unregistered Websites, With Bybit and VTMarkets Named

    The Cyprus Securities and Exchange Commission (CySEC) informs investors that several websites are not linked to any entity authorized to offer investment services or perform investment activities. It should be…

    Prop Trading: FunderPro to Introduce Futures

    Prop trading company FunderPro has announced plans to launch Futures services, the company announced on its website. In a notice, the firm opened a waitlist reportedly for exclusive access to…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    CySEC Flags Multiple Unregistered Websites, With Bybit and VTMarkets Named

    • November 14, 2024
    CySEC Flags Multiple Unregistered Websites, With Bybit and VTMarkets Named

    JPMorgan’s quants see upside for gold prices from here after Trump win

    • November 14, 2024
    JPMorgan’s quants see upside for gold prices from here after Trump win

    Nigeria plans $28 billion spending for 2025 budget, minister says

    • November 14, 2024
    Nigeria plans $28 billion spending for 2025 budget, minister says

    Gold prices fall on inflation worries; copper slips lower

    • November 14, 2024
    Gold prices fall on inflation worries; copper slips lower

    Master the Market with Hedge Fund Forex Strategies

    • November 14, 2024
    Master the Market with Hedge Fund Forex Strategies

    Mexico’s Sheinbaum to present constitutional safeguard for non-GMO corn in coming days

    • November 14, 2024
    Mexico’s Sheinbaum to present constitutional safeguard for non-GMO corn in coming days